President Donald Trump raised eyebrows after he posted five congratulatory tweets promoting a Monday announcement from energy giant Exxon Mobil, the company from which his secretary of state came to the administration.
The company highlighted earlier in the day that it was expanding its manufacturing operation along the Gulf Coast, creating more than 45,000 jobs in the region.
Initially, the White House posted a press release reiterating the Exxon Mobil news. That press release contained a paragraph that appeared to be copied, almost word-for-word, from the Exxon announcement.
Trump, who also wrote that the move from Exxon showed “we are already winning again,” then posted a roughly minute-long video praising the company soon after the administration’s release.
That video was pinned to the top of his account for a brief time.
“I’m very pleased to announce that the great company, Exxon Mobil, Is going to be investing $US20 billion in the Gulf Coast and the Gulf Coast region,” the president said. “It will be 45,000 jobs, and they’re great jobs. $US100,000 average. And this is something that was done, to a large extent, because of our policies and the policies of this new administration having to do with regulation and so many other things.”
“I said we’re bringing back jobs, and this is one big example of it,” Trump continued, adding, “I want to thank very much Exxon Mobil. Special company, special people.”
In the paragraph that appeared to be lifted from the Exxon Mobil release and inserted into the White House’s release, it was made clear that the investment was part of a plan that began in 2013.
“Exxon Mobil is strategically investing in new refining and chemical-manufacturing projects in the U.S. Gulf Coast region to expand its manufacturing and export capacity,” the release read. “The company’s Growing the Gulf expansion program, consists of 11 major chemical, refining, lubricant and liquefied natural gas projects at proposed new and existing facilities along the Texas and Louisiana coasts. Investments began in 2013 and are expected to continue through at least 2022.”
Exxon Mobil told Business Insider that it passed along the news to the White House hoping to shed light on its investment in the region.
“Our objective was to illustrate a very significant investment that we’re making in the Gulf Coast region, which is creating thousands of jobs and billions of dollars in economic activity — all thanks to the shale revolution,” Bill Holbrook, a senior adviser for Exxon Mobil, told Business Insider in an email. “We provided information about our announcement to the White House and they decided they wanted to issue a congratulatory press release.”
The touting of Exxon’s move fit with Trump’s promise that jobs would be created in the country under his watch. But it entered a “grey area” in terms of ethically acceptable language and promotion from the White House of an individual business, experts said.
“They ought to be careful,” Richard Painter, a law professor at the University of Minnesota and former top ethics lawyer for President George W. Bush, told Business Insider. “I mean, we would advise them to distance themselves, congratulate a company for the good work they do creating jobs but not doing so much that it looks like you’re shilling for the company.”
As Painter put it, it’s “unusual” to be “mentioning a particular company this much.”
Rep. Elijah Cummings, the ranking member on the House Committee on Oversight and Government Reform, made his objection to Trump’s promotion of Exxon’s move very clear in a statement to Business Insider.
“The White House has now become the mouthpiece of the oil industry — literally,” The Maryland Democrat said. “This is certainly the opposite of the President’s promise to drain the swamp.”
Adding to the appearance of an ethical conflict is the fact Trump’s secretary of state, Rex Tillerson, was the CEO of Exxon Mobil up until being tapped to lead the State Department by Trump.
Tillerson did take steps to clear up his potential conflicts of interest prior to his Senate confirmation hearing, announcing in accordance with the company that he would receive a $US180 million retirement package if confirmed. In exchange, he gave up his more than 2 million Exxon shares he’d be set to receive over the next decade, which could have been worth more than the payment, if Exxon’s stock appreciates in that time.
The left-leaning ethics watchdog group Citizens for Responsibility and Ethics in Washington still saw a potential conflict though with the substantial praise of Exxon from Trump.
“The president went out of his way to praise the company that until very recently was led by his secretary of state,” Jordan Libowitz, a CREW spokesman, said in a statement to Business Insider. “He went so far as to crib promotional material from the business. There appears to be a pretty significant conflict of interest there.”
Painter said the promotion of Exxon’s move should avoid significant scrutiny so long as Tillerson was not involved, which it did not appear he was. But Trump’s move enters the same territory as White House Counselor Kellyanne Conway’s decision to tout Ivanka Trump’s fashion brands in a Fox News interview, asking viewers to buy the product.
While Conway’s move was a “blatantly obvious” violation of the ethics rules in place, Painter said, Trump’s posts were more borderline. He said it’s in Trump’s interest to have jobs created in the US, and it’s fair to congratulate a company for doing so, just as Trump has done for other companies, such as Carrier, LL Bean, and Ford.
“But at what point does that cross the line to where you’re shilling for a company that your secretary of state formerly has a close relationship with,” he said, later adding, “At a certain point, if this continues, could reach a point where the White House is advertising for these companies. And then the companies are in effect advertising through the White House.”
Prior to Monday’s tweetstorm praising Exxon, and his decision to nominate Tillerson to lead the State Department, Trump had posted one tweet mentioning the company.
“Exxon donated $US250g to Obama’s inaugural,” he wrote in 2013, linking to a Breitbart News story. “I guess the Democrats have no problem accepting money from ‘big oil.'”
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